Sr. citizens, under certain conditions, not required to file ITRs. Details here



As the deadline to submit Income Tax (IT) returns – July 31 – nears, taxpayers, who are yet to file their returns, should do so immediately. Also, though the Union government has made it mandatory for all individuals, including senior citizens, to file ITRs, there are certain conditions under which senior citizens are exempted from submitting their returns.

Also Read: No plan to extend deadline for filing income tax returns, says Revenue Secretary

Exemptions for senior citizens

The provision to exempt older individuals, provided they fulfil certain conditions, was put forth by the central government in its Budget 2021 announcements. By inserting Section 194P (which came into effect on April, 2021) in the Income Tax Act, 1961, the Centre laid down the following conditions:

(1.) The senior citizen is a resident of India and aged 75 or above during the previous financial year, i.e. 2021-22.

(2.) He/she only has pension income and no other income. However, the person may also have interest income from the bank where pension income is being received.

(3.) The bank, in which pension and interest income is being received, is a ‘specified bank’ as notified by the Centre.

(4.) The senior citizen will be required to furnish a declaration to the bank, informing of it of particulars, in such form and verified in such manner, as may be prescribed.

(5.) According to a notification issued by the Government of India on September 2 last year, a ‘specified bank’ means any scheduled bank. Such banks are those that have been included in the Second Schedule of the Reserve Bank of India (RBI) Act, 1934.

See also  30% tax on crypto income to come into effect from today


Source link